Preparing for Liability on Wall Street
Capitol Hill staffers can attest that over the last two weeks, many consituents who called their representatives to support the bailout want the corporate officers “responsible for this mess” brought to justice. Allegations are being made of “massive fraud”. The presidential candidates want voters to believe that justice will be served. But what will it look like?
Investigations are expected to begin this spring. “Congress gave a pint, if not a quart, of blood in the current bailout plan,” says Micah Green, partner at Patton Boggs. “When they come back to work to make sure it never happens again, they’re going to be out for more than a pound of flesh.” By spring, Congress will have had the opportunity to have gone through internal Wall Street communications, a luxury not afforeded to Rep. Henry Waxman who is currently holding preliminary hearings.
The key to a Wall Street insider’s defense? Preparation. Companies will want to look over their communications before the government does to get a head start on their defense. Attorneys are also advising their clients to check their indemnity agreements to be sure their companies will pay for the cost of their defense.